Reconstitution of a Partnership Firm – Retirement/Death of a Partner · Class 12 · CBSE · Commerce Accountancy
On the retirement of a partner, the firm's goodwill is valued at ₹90,000. The retiring partner's share is 1/4, and the continuing partners gain in th…
Practice question from Reconstitution of a Partnership Firm – Retirement/Death of a Partner (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-328308
On the retirement of a partner, the firm's goodwill is valued at ₹90,000. The retiring partner's share is 1/4, and the continuing partners gain in the ratio 2:1. If goodwill is not raised in the books, what amount will be debited to the partner gaining the larger share?
- A.₹7,500
- B.₹15,000Correct answer
- C.₹22,500
- D.₹30,000
Solution
The retiring partner's share of goodwill is ₹90,000 × 1/4 = ₹22,500. This amount is borne by the gaining partners in their gaining ratio of 2:1, so the partner with the larger gain is debited with ₹22,500 × 2/3 = ₹15,000.
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